Montero Receives Second Instalment of US$8 million from Tanzania
February 10, 2025Toronto, Ontario – February 10, 2025 – Montero Mining and Exploration Ltd. (TSX-V: MON) (“Montero” or the “Company”) is pleased to confirm that US$8,000,000 in cash (the “Second Instalment Funds”) have been received by the Company’s legal representatives from the United Republic of Tanzania (“Tanzania”). The Second Instalment represents the second instalment of the US$27,000,000 settlement between the Company and Tanzania in connection with Tanzania’s expropriation of Montero’s Wigu Hill rare earth element project (the “Expropriation”), as previously announced on 20th November 2024.
The final instalment of US$7,000,000 (the “Final Instalment”) is due to be paid on or before 28th February 2025. The final net proceeds to be received by the Company is not certain at this time as final legal costs and other expenses Montero incurred in connection with defence and settlement of the Expropriation will be determined following receipt of the Final Instalment. After receipt of the Final Instalment, it is expected that the Company will finalize its analysis with respect to the distribution of funds including any potential distribution to shareholders of the Company. The Company expects to announce an update on its distribution plans during Q2 2025.
Dr Tony Harwood, President and CEO of Montero commented: “I am pleased Montero has received the second payment of US$8,000,000 from Tanzania with a final payment of US$7,000,000 to be paid on or before 28th February 2025. Further notice of payments received will be forthcoming.”
ICSID Arbitration
Montero and Tanzania jointly requested the arbitral tribunal to suspend the ICSID arbitration proceedings after receiving the first settlement payment. Upon receipt of the Final Instalment as scheduled, the parties expect to formally request the tribunal to discontinue the ICSID arbitration in its entirety.
Distribution of Funds
Montero is considering all options with respect to the distribution of the settlement proceeds, including but not limited to a return of capital distribution to shareholders. The exact amount of any distribution and the method of such distribution is yet to be determined and will be subject to accounting review and board approval. In addition, Montero will retain funds to cover legal, taxation, and administrative expenses, including potential costs for arbitral proceedings, or enforcement actions in the event of delays or non-payment of the Final Instalment. The latter will now be the sole responsibility of Montero. Further announcements will be made in due course.
Disclaimer
The conclusion of the ICSID arbitration and payment of the remaining instalment is conditional on Tanzania’s compliance with the settlement agreement. The agreement does not provide for any security for the benefit of Montero in case Tanzania would not pay any instalment, in which case Montero can either resume the ICSID arbitration or seek enforcement of the settlement agreement.
About Montero
Montero has agreed to a US$27,000,000 settlement amount to end its dispute with the United Republic of Tanzania for the expropriation of the Wigu Hill rare earth element project. The Company is also advancing the Avispa copper-molybdenum project in Chile and is seeking a joint venture partner. Montero’s board of directors and management have an impressive track record of successfully discovering and advancing precious metal and copper projects. Montero trades on the TSX Venture Exchange under the symbol MON and has 50,122,975 shares outstanding.